Page 65 - economic review

37CHAPTER

AGRICULTURE AND ALLIED SECTORS

Introduction

The agriculture sector in Kerala has undergone significant structural changes in the form of decline
in the share of GSDP, indicating a shift from agrarian economy towards service sector dominated
economy. The contribution of agriculture in the GSDP of the state has been steadily declining from
36.88 percent in 1980-81 to 8.95 percent in 2013-14. The sector suffered a setback in recent years
and the slowdown had several structural consequences including agrarian distress. The agricultural
performance is subject to year to year fluctuation due to vagaries of nature as well as high degree
of price volatility mostly due to international market price behavior of the commodities. It is a great
challenge and formidable task to arrest the decline and reverse the slowing growth of agriculture
sector in the state.

Section 1
Agriculture

Performance of Agriculture

The share of agriculture and allied in total GDP of the country declined from 15.2 per cent in the
Eleventh Plan to 13.9 per cent in 2013-14 (PE). However it still provides employment for more than
half of the population (54.6 per cent as per 2011 census).The resilience of the sector is evident from
the fact that the sector last posted negative growth rate in 2002-03 and a remarkable growth rate
of 4.1 per cent in the Eleventh Plan period. During 2013-14 the growth rate has been 4.7 per cent as
per the provisional estimates. Also India has emerged as one of the leading producers of rice,
wheat, milk fruits and vegetables with record production in food grains.

2.2 With regard to Kerala, the growth performance of the agriculture and allied sector has been
fluctuating across the plan periods. It witnessed a positive growth of 1.8 percent in Xth Plan period but
a negative growth rate of -1.3 percent in XIth Five Year Plan . In 2012-13, contrary to the quick estimate
which showed a 4.39 per cent growth rate, the provisional estimate now indicates a downward
revision of growth rates to 1.38 per cent. In 2013-14 also, the performance of the sector has been
bleak , it clocking a negative growth rate of -1.36 percent for agriculture & allied sectors together. This
is apparently due to the lack luster performance of agriculture which recorded a negative growth rate
of -2.88 per cent while the other two sub sectors under agriculture & allied sectors recorded positive
growth rates of 3.4 per cent (forestry and logging) and 5.43 per cent (fishing).

Economic Review 2014